Working after I take my pension

You may be able to keep working, or return to work if you’ve already taken your pension benefits, without your pension payments being affected. Read on to find out more.

Continuing to work while taking your pension

In most cases, as long as you started taking your pension after age 55. There are no restrictions on you working for any employer.

If you rely on a Protected Pension Age (PPA) to apply for your pension between the ages of 50 and 54, you should leave a gap before continuing to work for the same employer or an employer in the same corporate group. You can read more about PPA below.

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If you started taking your pension before you reached your Normal Retirement Age (NRA), then your pension payments may have been reduced to reflect the fact that they are expected to be paid for longer. This reduction may have been significantly higher if you continued to work, than it would be if you had left work and taken your benefits immediately. You can read more about this in the guide to retirement options.

There may also be an impact on the amount of tax you pay if you’re working while taking your pension. You can find out more at gov.uk/income-tax-rates

Because you’re already taking your pension, you would no longer be considered an ‘active' member of the Scheme. That means you are not paying in and may not be entitled to ill-health or some death benefits, even if you’re still working. Your employer may give you the chance to re-join the Scheme or give you the opportunity to join a different workplace pension.

If you have any questions about working while taking your pension, please speak to your employer in the first instance. 

Going back to work after you've started taking your pension

If you’ve already started taking your pension, you can still decide to go back to work.

In most cases, as long as you started taking your benefits after age 55 then there will be no restrictions on you returning to work for any employer.

Restrictions will apply if you retired before 55 with a Protected Pension Age (PPA). Please see the PPA section below for details.

Because you’re already taking your pension, you will no longer be considered an ‘active member’ of the Scheme. That means you are not paying in and may not be entitled to ill-health or some death benefits, even if you go back to work.  

If you do go back to work, your employer may let you re-join the Scheme or give you the opportunity to join a different workplace pension. This would need to be discussed with your employer directly.

Working while taking your pension may also have an impact on the amount of tax you’re paying. You can find out more at gov.uk/income-tax-rates.

Going back to work if you retired with a Protected Pension Age (PPA)

If you were an active member of the Scheme on 5 April 2006, you may have a Protected Pension Age (PPA), and been able to start taking your benefits from age 50.

If this was the case and you started taking your pension before age 55, then there are additional restrictions on you going back to work with the same employer. These are:

  • You must leave a gap of at least 1 month if you return to either the same employer or another employer in the same corporate group.
  • You must leave a gap of at least 6 months if your new role is not materially different in nature to your previous role.

If you don’t follow these restrictions then you could face a large tax bill. For more information about the PPA and the conditions that need to be met, please read the Protected Pension Age guide.

Who to contact about continuing to work or going back to work

If you have any questions about working while taking your pension or re-joining the Scheme while working, please speak to your employer directly.

You might also want to get independent financial advice about the impact of things like tax if you continue to, or go back to work, while getting your pension.

 

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What to read next...

My pension payments and P60s

Find out how and when your pension is paid and where to find your P60. 

Updating my bank details 

Have you changed your bank or building society? Let us know so we can make sure your pension is still paid.  

Useful contacts

Details of support groups and charities available to retired railway staff. Plus contact information for the Scheme administrator, Railpen.